Core Insights - The introduction of audio features by major short video platforms like Douyin and WeChat Video indicates that the average time spent on short videos has reached a peak, suggesting a shift towards audio consumption as a means to extend user engagement [3][8]. User Engagement and Consumption Patterns - As of the end of 2024, the average daily usage time for short video applications in China is 156 minutes, marking a 3.1% year-on-year increase, which positions it as the leading internet application in terms of user engagement [3]. - The average weekly internet usage time for Chinese netizens is reported to be 28.7 hours, reflecting a 2.6-hour increase compared to the previous year, indicating that while short video consumption is high, overall internet engagement continues to grow [3]. Health and Usage Recommendations - The Chinese CDC recommends that adults take breaks every 40-60 minutes of screen time and limit total screen time to no more than 4 hours per day for non-work purposes [5]. - The World Health Organization suggests that adults should limit all screen entertainment time to no more than 2 hours per day, with many users likely exceeding this recommendation [6]. Audio vs. Video Consumption - The audio feature allows users to consume content without visual engagement, which may help platforms retain users who have reached their visual limits, thereby increasing platform stickiness and advertising revenue potential [8]. - Research indicates that while audio consumption is growing, the user base and revenue scale for audio platforms remain smaller compared to video platforms, although user engagement levels are comparable [8][10]. User Overlap and Market Dynamics - There is a 25-35% overlap in users between short video and audio platforms, but the overlap among deep users (those spending over 1 hour daily) drops to 10-15%, indicating distinct user bases for each type of content [10]. - In the U.S., about 65% of podcast listeners also use platforms like YouTube and TikTok, but the overlap among heavy users is less than 20%, suggesting that short video and podcast audiences are largely separate [10]. Cultural and Cognitive Considerations - The concept of "cultural stamina" is highlighted, indicating that users have limited time and attention for content consumption, leading to a stabilization in daily usage times for both short videos and podcasts after a period of rapid growth [12]. - A significant portion of users (over 60%) report that their time spent on short videos and podcasts has reached its limit due to a lack of available free time [12].

Core Viewpoint - The audio industry is undergoing a phase of consolidation driven by the importance of scale in the content sector, with free business models demonstrating a strong ability to attract users and traffic, potentially breaking market size limits [1][4][25] Group 1: Company Developments - Tencent Music Entertainment (TME) plans to acquire Ximalaya for $2.4 billion, with the agreement potentially reached in the coming weeks [1] - TME's online music service revenue increased by 25.5% year-on-year, accounting for over 75% of total revenue, highlighting its growth strategy focused on online music [5][6] - TME's monthly active users for online music services have shown a decline from 620 million in 2022 to 570 million in 2024, indicating challenges in user retention [7] Group 2: Market Dynamics - The audio market has seen a lack of platform-level companies, with many players reverting to content production rather than platform development [1][4] - The audio industry faces a growth ceiling due to high content production costs and the uncertainty of monetization, leading to a trend where platforms must scale to survive [4][19] - The overall user base for online audio has stagnated at 335 million, with a notable decline in usage time from 58 minutes in 2020 to 25 minutes [22][24] Group 3: Competitive Landscape - Ximalaya, despite facing challenges in commercialization and high content costs, boasts a significant user base of 303 million monthly active users, capturing 60% of mobile listening time in China [11][18] - The competitive landscape is shifting, with platforms like Douyin and Kuaishou capturing market share from traditional audio live streaming services [8][20] - The trend of free models in content consumption has proven effective in other sectors, suggesting a potential for similar disruption in the audio market [25][26]